Process to get TDS Lower deduction U/s 197

Procedure for Applying for Lower Deduction Certificate under Section 197 of the Income Tax Act, 1961

Registration on TRACES:

1. Access the official website: https://contents.tdscpc.gov.in/.
2. Click on the “Login” option and choose “Register as New User.”
3. Select ‘Taxpayer’ from the provided drop-down list.
4. After selecting “Proceed,” the registration form will be presented.
5. Input the necessary information, submit the form, and complete the registration on TRACES.

Filing Form 13 after TRACES Registration:

1. Log in to TRACES and, under the ‘My Profile Tab,’ register the Digital Signature Certificate (DSC) of the authorized person.
2. Navigate to the ‘Statements/Form’ tab and select ‘Request for Form 13.’
3. Form 13 will be displayed, and the applicant must provide the following details:

• Basic details of the Company and authorized person registered on the TRACES portal (auto-populated).
• Details of existing liability under the Income-Tax Act.
• TAN-wise details of estimated income/amount to be received from parties during the subject year (e.g., FY 2019-20) with relevant TDS sections (e.g., Section 194C, Section 194J, etc.).
• Requested rate of TDS proposed by the taxpayer for the estimated income.
• Details of projected income for the subject year (e.g., FY 2019-20) and the immediately preceding financial year (FY 2018-19).
• Details of estimated tax computation for the subject year and the immediately preceding financial year.

1. Upload supporting documents, including:

• Final Assessment orders for the last four assessment years.
• Details/workings for estimated income and tax computation (self-attested by the authorized person).
• Audited Financial Statements of the last three years.
• Projected Balance Sheet & P/L income for the subject year and the immediately preceding financial year (self-attested by the authorized person).
• Acknowledged copy(s) of TDS returns filed for the last two financial years.

1. Once all details are completed and documents uploaded, submit Form 13.

Post-Submission Process:

1. The online Form 13 undergoes processing and review by the Assessing Officer (AO).
2. The AO reviews the details and documents, seeking clarifications if necessary.
3. Upon AO approval, the application is forwarded to the Additional Commissioner of Income Tax (Addl CIT) for approval.
4. Post approval by Addl CIT, the application is sent to the Commissioner of Income Tax (CIT) for final review and approval.
5. After approval by CIT, the application is successfully completed, and the process for generating the lower withholding certificate is initiated.
6. Once the Lower Withholding certificate is generated, it can be downloaded from the TRACES portal.

In case of assistance or guidance, you may ask to our Tax expert team for support.